Electronic payment transactions in Nigeria rose to N600 trillion in 2023, hitting an all-time high reflecting a significant surge as more Nigerians embrace cashless payment methods.
Gatekeepers News reports that according to the data released by the Nigeria Inter-Bank Settlement System (NIBSS), the value recorded on the NIBSS Instant Payment (NIP) represents a 55% increase over the N387 trillion recorded in 2022.
The surge underscores the growing adoption of electronic payment channels across the country.
The trend was particularly evident in December 2023, a festive period characterised by heightened spending activities, with Nigerians transacting a total of N71.9 trillion over electronic platforms, marking the highest monthly record on the NIBSS electronic payment platform.
March 2023 stood out with a peak of 1.1 billion e-payment transactions, driven by cash scarcity at the time, although the value didn’t match the December peak. Overall, NIBSS processed 9.7 billion transactions in 2023, a staggering 90% increase from the previous year’s 5.1 billion.
Analysing monthly transaction values, January saw N38.9 trillion spent on electronic platforms, followed by N36.8 trillion in February. March experienced a significant jump to N48.3 trillion due to cash scarcity, while April and May recorded N41.3 trillion and N45.9 trillion, respectively.
June witnessed a slight decline to N45.3 trillion, followed by an uptick to N47.4 trillion in July. August and September surged further to N50.9 trillion and N51 trillion, respectively. October and November transactions valued at N59 trillion and N63.6 trillion, respectively, leading to the peak of N71.9 trillion in December.
The NIBSS Instant Payments (NIP), introduced in 2011, has played a pivotal role in facilitating these transactions, offering an account-number-based, online real-time inter-bank payment solution. Nigerian banks have seamlessly integrated NIP across various channels, including internet banking, mobile apps, USSD, POS, and ATMs, to provide instant value to customers.
Besides the March cash scarcity, the Central Bank of Nigeria’s revised cashless policy, limiting daily cash withdrawals, has also contributed to the growth of e-payments. With more Nigerians embracing mobile transfers, PoS payments, and USSD transactions, the momentum towards a cashless economy continues to strengthen.
